Determinants of ICO success and post-ICO performance

Date
2022-10-20
Advisor
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Source Title
Borsa Istanbul Review
Print ISSN
22148450
Electronic ISSN
Publisher
Borsa Istanbul Anonim Sirketi
Volume
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Pages
1 - 23
Language
English
Type
Article
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Abstract

Initial coin offerings (ICOs) have emerged as an alternative way of raising funds for entrepreneurial ventures to develop a new project or product. In this study, a comprehensive analysis is conducted on the determinants of ICO success and aftermarket performance of ICOs. Our evidence suggests that ICOs with higher ratings, shorter planned token sale duration, smaller share for token sale, larger number of experts and more members in the developing team have a greater likelihood of success and raising more funds. We also show that offer price and market sentiment play a major role in explaining longer term post-ICO performance. Yet, key to a successful ICO and post-ICO performance differ between boom vs bust periods in the cryptocurrency markets.

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Keywords
Fundraising success, Initial coin offerings, Post-ICO Performance, Underpricing
Citation
Published Version (Please cite this version)